Elitify faces serious cash crunch, lay off 80 employees

Fashion portal Elitify is making every effort to secure its funds. The cash crunch it is facing has compelled it to ask for resignation from around 80 employees since November, without even paying their salaries and dues, as reported to The Economic Times by various people.

Elitify's cash crunch has compelled it to ask for resignation from around 80 employees

“The company has not paid salaries since December,” a former employee stated. Another ex-staffer added: “I was not paid my salary for the months of December and January and this amounts to Rs 2 lakh in total.”Although Elitify founder Amit Rawal denies that the company is in a bad shape; he told The Economic Times, that this action has only effected some “rightsizing” after analysing the reviews of the as per market conditions.

“We were anticipating funding in December and had hired new staff in different functions for new lines of business as we were looking to scale up. But as that didn’t happen, we had to ask certain people to leave, while some people had to be asked to leave due to performance issues after multiple warnings. It was a combination of rightsizing and alignment based on market reality,” Amit Rawal was quoted by The Economic Times as saying.

Further to the above quote, Amit mentioned that Elitify is working at raising funds and has also received offers for acquisition, but they are not considering any such option.

The Economic Times had reported earlier that the branch of Elitify in Gurgaon has reached out to Paytm for funds. Earlier they had approached Genesis Luxury but the deal was unsuccessful. As per sources who know about this development, the company has again approached Genesis Luxury with a request to reconsider being bought at a lower price.